67-57.001: Purpose and Intent
67-57.005: Definitions
67-57.010: Fees
67-57.020: Notice of funding Availability (NOFA)
67-57.030: Membership Application Procedures
67-57.040: Property Standards
67-57.050: HOP Program Restrictions
67-57.060: Eligible Homebuyer Requirements
67-57.070: Homebuyer Loan Process
67-57.080: HOME Regulations
PURPOSE AND EFFECT: This rule establishes the procedures by which the Florida Housing Finance Corporation shall administer the Homeownership Pool (HOP) Program which provides down payment and closing costs assistance to eligible homebuyers. The Rule and adopted reference materials are necessary and appropriate for the efficient administration of the Program.
SUMMARY: This rule establishes the procedures by which the Florida Housing Finance Corporation shall administer the Homeownership Pool (HOP) Program which provides down payment and closing costs assistance to eligible homebuyers.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 420.507(12), (14) FS.
LAW IMPLEMENTED: 420.507(23), 420.5088, 420.5089 FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: Monday, August 6, 2007, 10:00 a.m. – 12:00 Noon
PLACE: Florida Housing Finance Corporation, Seltzer Conference Room, 6th Floor, 227 North Bronough Street, Tallahassee, Florida 32301
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Bridget Warring (850)488-4197. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Bridget Warring, Homeownership Programs Manager, Florida Housing Finance Corporation, 227 North Bronough Street, Tallahassee, Florida 32301, (850)488-4197
THE FULL TEXT OF THE PROPOSED RULE IS:
67-57.001 Purpose and Intent.
The purpose of this rule chapter is to establish the Homeownership Pool (“HOP”) Program procedures by which the Corporation shall administer the Application process, determine loan amounts, service loans, and provide down payment purchase assistance to Eligible Homebuyers for the purchase of new construction Units or substantially rehabilitated under the Homeownership Assistance Program (HAP) as authorized by Section 420.5088, F.S., and the HOME Investment Partnerships Program (HOME) as authorized by Section 420.5089, F.S., and HUD regulations, 24 CFR § 92, which is adopted and incorporated into this rule chapter by reference and which is available on our website at http://www.floridahousing.org/Home/Developers/HomeownershipPrograms/HOP.
Specific Authority 420.507(12), (14) FS. Law Implemented 420.507(23), 420.5088, 420.5089(2) FS. History–New 6-26-06, Amended________.
67-57.005 Definitions.
(1) through (5) No change
(6) “Area(s) of Critical State Concern” means the
(7)(6) No change.
(8) “Calendar Days” means the seven (7) days of the week.
(7) through (8) renumbered (9) through (10) No change.
(9) “Calendar Days” means the seven (7) days of the week. With respect to computing any period of time allowed by this rule, the day of the event from which the designated period of time begins shall not be included. The last day of the period so computed shall be included unless it is a Saturday, Sunday or legal holiday, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday.
(10) through (14) renumbered (11) through (15) No change.
(16)(15) “Eligible Properties” means newly constructed Units, or Units that have gone through Substantial Rehabilitation, that are single family detached houses, manufactured homes, homes with shared-wall construction, condominiums or co-ops.
(16) through (22) renumbered (17) through (23) No change.
(24) “HAP” means the Homeownership Assistance Program pursuant to Section 420.5088, F.S.
(25)(23) No change.
(26)(24) “HOP” means the Homeownership Pool Program administered by the Corporation pursuant to HUD Regulation 24 CFR § 92 and Sections 420.5088 and 420.5089, F.S.
(27)(25) “HOP Loan” means a zero percent (0%) interest rate, non-amortizing second mortgage loan made to an Eligible Homebuyer, who has an Adjusted Income that does not exceed eighty percent (80%) AMI, for the purpose of down payment in the amount necessary to reduce the purchase price to an affordable amount and closing costs assistance.
(26) through (28) renumbered (28) through (30) No change.
(31)(29) “Low Income” means the Adjusted Income for persons or households that does not exceed 80 eighty percent (80%) AMI.
(32)(30) No change.
(33)(31) “Member” means an entity, which includes non-profit and for-profit organizations who are developers of affordable housing, Community Housing Development Organizations (CHDOs), counties and eligible municipalities that are recipients of SHIP funding, and the United States Department of Agriculture – Rural Development (USDA-RD), which has been approved by the Corporation to participate in the HOP program.
(32) through (40) renumbered (34) through (42) No change.
(41) “Second Mortgage” means the recorded mortgage securing the HOP Loan which is subordinate only to the First Mortgage unless otherwise approved by the Board.
(42) through (44) renumbered (43) through (45) No change.
(46) “Subordinate Mortgage” means the recorded mortgage securing the HOP Loan which is subordinate to the First Mortgage.
(47) “Substantial Rehabilitation” means the process by which eligible Members that are counties and eligible municipalities that are recipients of SHIP funding, repair, improve, and bring an entire Unit up to current state or local code which is subsequently sold to an Eligible Homebuyer, as per their established policies and procedures submitted within their HOP Membership Application and approved by the Corporation.
(45) through (49) renumbered (48) through (52) No change.
Specific Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 6-26-06, Amended_________.
67-57.010 Fees.
(1) No change.
(2) Member shall pay a non-refundable Loan servicing fee upon submission of each loan package to the Servicer. Member may be reimbursed for this fee out of closing. Florida Housing shall be responsible for any HOP Loan servicing fees associated with the required homebuyer analysis and on-going compliance.
(3) through (4) No change.
Specific Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 6-26-06, Amended________.
67-57.020 Notice of Funding Availability (NOFA).
(1) through (2) No change.
Specific Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 6-26-06.
67-57.030 Membership Application Procedures.
(1) In order to participate in the HOP program, the Applicant must first apply to become a Member by meeting the requirements of the HOP Membership Application (“HOPMBR101 (9/1/07) (4/1/06)”), which is adopted and incorporated herein by reference and is available on the Corporation’s Website at http://www.floridahousing.org/Home/Developers/HomeownershipPrograms/HOP.
(2) No change.
(3) If a Member submits a reservation for a Unit that was part of a development requesting HOME funds in a previous application to Florida Housing, pursuant to Rule Chapter 67-50, F.A.C., and the application for funding was withdrawn by the Member after June 26, 2006, and that Member or any Principal thereof had any ownership interest in that previous applicant entity, then it is deemed that the Member contemplated using HOME funds for the Unit prior to its construction and all applicable HOME provisions relating to Davis-Bacon, Affirmative Marketing, and environmental review will apply to that Unit, pursuant to 24 CFR § 92.
(4) If a Member has previously been awarded HOME funds for a development, then all of the Units committed to in conjunction with that award of funds, subject to the policy adopted by the Board on October 14, 2005, which is adopted and incorporated by reference, must be delivered before any other Units in the development are eligible for a reservation of funds under this chapter. This policy is available on the Corporation’s Website at: http://www.floridahousing.org/Home/Developers/HomeownershipPrograms/Homeownership/default.htm http://www.floridahousing.org/Home/Developers/Homeownes hip Programs/HLP.
(5) through (6) No change.
Specific Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 6-26-06, Amended________.
67-57.040 Property Standards.
(1) All new construction Units must meet the more stringent of the State or local building code requirements as applicable. All Units must contain at a minimum:
(a) Range and oven; and
(b) Energy Star rated refrigerator;
(c) Energy Star rated dishwasher (which may be waived for self help units);
(d) Energy Star rated power vented fans or range hoods that exhaust to the exterior;
(e) Florescent lighting fixtures or compact florescent bulbs in all lighting fixtures;
(f) Double or knife hinges on bottom cabinet doors that enables full 180-degree opening;
(g) Lever-handled faucet with removable spout or lever-handled faucet with separate sprayer (spout or sprayer must have at least a 9-inch hose);
(h) No exposed urea formaldehyde particle board;
(i)(b) Washer and dryer hookups;
(j)(c) Telephone hook-ups, with electrical outlet located within 12" of each telephone jack (minimum of 2);
(k)(d) Cable or satellite TV hookups (minimum of 2);
(e) Hallways should be no less than 36'' wide;
(l)(f) Thermostat and Llight switches should be no more than 48'' above floor level;
(m)(g) Midpoint on eElectrical outlets should be located no less than 18'' above finished floor level;
(n)(h) Reinforced walls for future installation of horizontal grab bars in toilet, bathtub, and shower walls;
(o) Lever handled faucets with anti-scald in each tub/shower fixture;
(p)(i) Lever-action handles on all doors and faucets in Units and public areas;
(q)(j) Toggle-type switches for lights and fans;
(r)(k) Width of all interior doors used for ingress/egress must be a minimum of 34"; Minimum of 32'' clear openings in all interior and bathroom doorways; and
(s)(l) At least one accessible means of egress/ingress, which may be waived for manufactured housing Uunits and Units built in Area(s) of Critical State Concern. For Units consisting of two or more levels, all space on the entry level of the Unit must meet the requirements of paragraphs (1)(a)-(r) above. At least one full bathroom and one bedroom must meet the requirements of paragraphs (1)(a)-(r) if there is not a full bathroom and a bedroom on the entry level; and
(t) Provide a home maintenance manual that includes a routine maintenance plan; instructions for all appliances, HVAC operation, water-system turnoffs, lighting equipment, information on how to use and maintain the green features of the home, including paving materials and landscaping, and encourage additional green activities such as recycling, gardening and use of healthy cleaning materials.
(2) All Units must include at a minimum the following exterior features:
(a) Outdoor lights are photovoltaic, low voltage, or have motion detector;
(b)(a) Minimal landscaping;
(c)(b) Paved/surfaced driveway and walkway to one entry door; and
(d)(c) Off-street parking.
(3) Site standards must include:
(a) through (b) No change.
(c) Site must be free from excessive traffic and noise, including that from cars, trains and airplanes. Members must submit a mitigation plan to the Corporation for Loan Servicing, detailing the proposed means and methods of risk reduction, if a Unit is (i) located within 3,000 feet of an active railroad line and/or subject to high railroad noise levels, (ii) located within 1,000 feet of a major high-volume traffic artery, freeway, or other highway would carry a daily volume of 25,000 motor vehicles or more, or (iii) within 500 feet if the highway that would carry more than 10,000 vehicles but fewer than 25,000. The site must not be located in an airport clear zone;
(d) through (e) No change.
(4) Manufactured homes must meet or exceed the following standards, which are adopted and incorporated herein by reference and are available at http://www.floridahousing.org/Home/Developers/HomeownershipPrograms/HOP, unless superseded by state or local building codes:
(a) Meet the Manufactured Home Construction and Safety Standards (MHCSS) pursuant to 24 CFR XX Part 3280;
(b) through (f) No change.
Specific Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 6-26-06, Amended________.
67-57.050 HOP Program Restrictions.
(1) All Uunits must be new construction which have not and cannot have been previously occupied except that Members that are counties and eligible municipalities that are recipients of SHIP funding may make reservations for Eligible Homebuyers for HOP funds on Units that are currently in the process of Substantial Rehabilitation.
(2) No change.
(3) The maximum per-unit subsidy of HOP HOME funding is limited to the lesser of twenty five percent (25%) of the purchase price of the Unit, $70,000, or the amount necessary to meet the borrower analysis criteria, with the exception of Eligible Homebuyers with disabilities and those at fifty percent (50%) AMI or below, which shall not exceed the lesser of thirty five percent (35%) of the purchase price, $80,000, or the amount necessary to meet the borrower analysis criteria.
(4) through (7) No change.
(8) The HOP Loan should not be in lower than a second lien position; however, it may occupy a lien position lower than second if another source of down payment assistance from a local government is provided to the Eligible Homebuyer in an amount that exceeds the HOP Loan. The HOP Loan must be in not lower than a second lien position and shall not share priority with any other liens unless approved by the Board.
(9) The combined loan-to-value ratio cannot exceed one hundred five percent (105%) of the after construction or appraised value of the HOME-Assisted Unit with the exception of Eligible Homebuyers with disabilities for which the ratio cannot exceed one hundred twenty percent (120%). In the loan-to-value calculation, the Corporation will not include any subsidy that contains forgivable terms within a five (5) year period or any portion of a subsidy that is forgivable within a five (5) year period.
(10) No change.
(11) When HOP HOME funds are used with other Corporation programs, the more stringent borrower analysis criteria will apply as it relates to eligibility requirements; however, in no instance can the HOP Loan be combined with any other Corporation down payment assistance funds.
(12) No change.
(13) A Unit shall qualify as affordable housing if:
(a) The value or initial purchase price of the property after construction does not exceed ninety-five percent (95%) of the median purchase price for the area;
(b) The purchase price of the property after construction must not exceed the appraised value of the property; and
(c) The Model Energy Code requirements are met or exceeded as enumerated in 2005 Florida State Energy Code (which is more stringent than Section 101 of the Energy Policy Act of 1992).
(14) Members are responsible for providing the assigned servicing entity with completed documentation of the homebuyer.
(15)(13) Homebuyer reservations will be denied or cancelled at the time of submission if a Member or any Principal, or Affiliate of a Member has any existing developments participating in any Corporation programs that remain in non-compliance with the Code, the applicable Florida Statutes and rule chapters, loan documents, or any loan commitment after any applicable cure period granted for correcting such non-compliance has ended.
(16)(14) No change.
Specific Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 6-26-06, Amended________.
67-57.060 Eligible Homebuyer Requirements.
(1) In order to receive a HOP Loan under the HOP program, the Eligible Homebuyer must:
(a) Have an Adjusted Income that does not exceed eighty percent (80%) AMI;
(b) Qualify as an Eligible Homebuyer at the time of the execution of the purchase contract;
(c) Occupy the Unit as their principal residence throughout the affordability period;
(d) Provide a minimum down payment of $500, except when participating in a Self-Help program where the minimum hours of sweat equity are accomplished;
(e) Not have personal assets in excess of $50,000, excluding equity contributions toward the Unit; and
(f) Completed a HUD approved or SHIP approved face to face homebuyer education course; and
(g)(f) Comply with the HOP Homebuyer Underwriting Guidelines (9/1/07) (4/1/06) (Revised 11/27/06), which are adopted and incorporated herein by reference and available at http://www.floridahousing.org/Home/Developers/HomeownershipPrograms/HOP, if receiving a first mortgage loan.
(2) No change.
(3) Repayment of principal on the HOP Loan shall be deferred until maturity or if the homebuyer sells, transfers or disposes of the Unit either voluntarily or involuntarily, or ceases to occupy the Unit as a principal residence pursuant to 24 CFR § 92.254(4) or 420.5088, F.S.
(4) No change
Specific Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 6-26-06, Amended________.
67-57.070 Homebuyer Loan Process.
(1) Once construction on the Unit has begun, Members shall reserve homebuyer financing, on a loan-by-loan basis, by providing the required date of foundation inspection on the HOP Homebuyer Reservation (“HOPRES201 (9/1/07) (4/1/06)”), which is adopted and incorporated into this rule chapter by reference and which is available on our website at http://www.floridahousing.org/Home/Developers/HomeownershipPrograms/HOP.
(2) Within fourteen (14) Calendar Days of making the reservation, unless a Member is subject to subsection 8 below, Members must submit to the Corporation a copy of the building permit and the Corporation must approve the completed Environmental Checklist (“HOPENV301 (9/1/07) (4/1/06)”), which is adopted and incorporated into this rule chapter by reference and which is available on our website at: http://www.floridahousing.org/Home/Developers/HomeownershipPrograms/HOP or the reservation will be cancelled.
(3) through (6) No change.
(7) A minimum of five (5) ten (10) Calendar Days prior to closing, the Member shall provide the loan closing package, which shall include:
(a) Requisition of Ffunds/Loan Detail Report;
(b) Copy of Certificate of Occupancy (“CO”);
(c) Loan detail report;
(b)(d) Proof of property insurance;
(c)(e) Proof of title insurance; and
(d)(f) Amenities certification.
(8) Members using Self Help under USDA-RD Section 502 financing can make reservations four (4) weeks prior to the homebuyer closing. Within ten (10) Calendar Days of receiving the Once a reservation is received, the borrower analysis package, including the HOP Environmental Statutory Checklist (“HOPENV302 (4/1/06)”), which is adopted and incorporated into this rule chapter by reference and which is available on our website at http://www.floridahousing. org/Home/Developers/HomeownershipPrograms/HOP, must be sent to Loan Servicing within ten (10) Calendar Days for review and approval. In addition, the HOP Self-Help Checklist (“HOPSelfHelp302 (9/1/07”), which is adopted and incorporated into this rule chapter by reference and which is available on our website at: http://www.floridahousing.org/Home/Developers/HomeownershipPrograms/HOP, or other acceptable documentation must be sent to the Corporation. Upon approval, the closing can occur and funds will be held in escrow by the Corporation USDA-RD until completion of the loan closing package.
Specific Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5088, 420.5089 FS. History–New 6-26-06, Amended________.
67-57.080 HOME Regulations.
(1) No change.
(2) A Unit shall qualify as affordable housing if:
(a) The value or initial purchase price of the property after construction does not exceed ninety-five percent (95%) of the median purchase price for the area;
(b) The purchase price of the property after construction must not exceed the appraised value of the property; and
(c) The Model Energy Code requirements are met or exceeded as enumerated in 2005 Florida State Energy Code (which is more stringent than Section 101 of the Energy Policy Act of 1992).
(3) Members are responsible for providing the assigned servicing entity with completed documentation of the homebuyer.
Specific Authority 420.507(12), (23) FS. Law Implemented 420.507(23), 420.5089 FS. History–New 6-26-06, Amended_______.